Market Overview

UPDATE: Goldman Sachs Upgrades Granite Construction On Outlook of Construction Market

Related GVA
18 Biggest Mid-Day Losers For Friday
Earnings Scheduled For February 17, 2017

In a report published Thursday, Goldman Sachs analyst Jerry Revich upgraded Granite Construction (NYSE: GVA) from a Neutral rating to a Buy rating and raised the price target from $32.00 to $36.00.

In the report, Goldman Sachs says "We see bottoming margins, leverage to an accelerating US construction recovery, and significant upside to midcycle earnings. While our view on the US construction cycle has not changed, we now see attractive risk-reward for the stock following a healthy recalibration post a 3Q miss and mounting visibility on a US non-residential construction recovery. We estimate mid-cycle EPS of $3, potentially in 2016 driven by (1) the elimination of contract losses in a less competitive bid environment, consistent with prior cycles, (2) improved operating leverage in construction materials, and (3) SG&A leverage."

Granite Construction closed on Thursday at $30.31.

Latest Ratings for GVA

Jan 2017Canaccord GenuityInitiates Coverage OnBuy
Aug 2016FBR CapitalMaintainsOutperform
Aug 2016MKM PartnersMaintainsBuy

View More Analyst Ratings for GVA
View the Latest Analyst Ratings

Posted-In: Goldman Sachs Jerry RevichAnalyst Color Upgrades Analyst Ratings


Related Articles (GVA)

View Comments and Join the Discussion!